page last edited on 30 October 2016
Taxes placed on the sale or lease of goods and services in the United States are called sales taxes. Sales taxes are only charged at the final point of sale, so resellers and wholesalers are exempt from paying tax. Any merchant in the US needs to be sales tax compliant. This means that a retailer has to charge sales tax to buyers in states where he has sales tax nexus or phisical or econimical presence in other words.
US sales tax in X-Cart can be configured manually using the Sales Tax addon. Setting up sales tax in X-Cart 5 is not difficult, whereas the system provides enough flexibility to configure even the most intricate tax calculation rules: if necessary, it is possible to configure your sales tax so it is calculated differently depending on the tax class of the products in the order, the customer’s address zone and the customer’s membership level.
Whether you choose a manual sales tax set-up or an automated one, first consult your accountant or local tax authority on the tax requirements necessary for running your business online. This is highly recommended to ensure you are charging tax properly for your store.
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